Indonesia to Launch the World’s 9th Largest Float`ing LNG Facility in West Papua

Indonesia is on the verge of achieving a historic milestone in its energy sector, as it prepares to launch the country’s largest and the world’s 9th largest Floating Liquefied Natural Gas (FLNG) facility. The massive infrastructure is being developed in Teluk Bintuni, West Papua, and forms part of the Kasuri Block gas development project, operated by Genting Oil Kasuri Pte Ltd (GOKPL), a subsidiary of Genting Berhad.

1. Construction Progress and Government Oversight

As of June 2025, construction progress for the FLNG facility has reached 53% completion, as confirmed by Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, during his site visit to LNG Tangguh and the Kasuri Block area. A technical verification team will be dispatched to China, where the FLNG unit is being constructed at the shipyards of Wison New Energies in Nantong and Zhoushan.

According to Minister Bahlil, this will be the largest FLNG facility in Indonesia, and based on Genting’s internal reports, it is ranked as the 7th largest floating LNG unit globally—although the government aims to validate this independently.

2. Project Specs and Contract Details

The FLNG is being delivered under an EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) contract worth USD 962.8 million, signed on June 20, 2024, between PT Layar Nusantara Gas (another Genting subsidiary) and Wison New Energies Co., Ltd. The contract includes a possible reimbursable addition of up to USD 70 million, bringing the potential total value over USD 1 billion.

Once completed and tested at Wison’s yards, the vessel will undergo a sail-away phase in Q2 2026, before final offshore commissioning at the production site in West Papua. The entire EPCIC phase is expected to span 27 months, followed by an 18-month warranty period.

3. Supply Source: Asap-Kido-Merah Fields

The FLNG facility will process natural gas supplied from the Asap, Merah, and Kido (AKM) fields, all located within the Kasuri Block under a Production Sharing Contract (PSC) signed in May 2008 between GOKPL and SKK Migas. These fields were approved for development in February 2023 and are projected to begin gas output in 2027, reaching 330 million standard cubic feet per day (MMSCFD).

Gas allocation will be split as follows:

• 230 MMSCFD for liquefaction and LNG export via the FLNG.
• 101 MMSCFD will support a future ammonia-urea plant in West Papua, enabling local industrialization.
• Strategic and Economic Importance

Designated as a National Strategic Project (Proyek Strategis Nasional/PSN) since November 2023, the FLNG development marks a leap in Indonesia’s ambition to become a major LNG exporter. This project not only supports cleaner energy transition efforts but also localizes industrial opportunities.

Key figures include:

• USD 3.37 billion in total investment.
• USD 2.01 billion projected state revenue.
• 1,500+ jobs during construction and 200 permanent roles during operations, with 80% of positions intended for local Papuan residents.
  4. Environmental & Global Impact

Unlike conventional onshore LNG plants, FLNG technology offers a reduced environmental footprint and greater speed in deployment. It enables the development of offshore resources with minimal land disruption—key to preserving the biodiversity of Papua.

By 2027, Indonesia’s new FLNG unit will not only bolster the country’s energy independence but also strengthen its reputation as a reliable and environmentally conscious LNG supplier in the Asia-Pacific region and beyond